Newspaper Articles published in De Ware Tijd (April)
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GOVERNMENT WANTS TO BRING STAATSOLIE BACK INTO SURINAME'S
HANDS
The government's attempts to attract foreign investors for Staatsolie and
Suriname's oil industry are based on the intention to bring the state-owned
company back into the hands of the Surinamese people, and to get the most
out of this sector for Suriname. President Jules Wijdenbosch stated this
at the regular press conference of the Council of Ministers yesterday.
He pointed out that at the moment, every decision by Staatsolie depends
on the approval of its largest creditor, the ABN/AMRO Bank in Houston,
USA. The President, who deplores the atmosphere created around Staatsolie,
asked two questions about the state-owned company: "Is it still national
property? If so, we should continue. If not, we should bring the company
back into the nation's fold." According to him, every decision by and about
Staatsolie depends on the approval of the ABN/AMRO Bank in Houston. Not
one piece of land is in Suriname's hands. Wijdenbosch pointed out that
besides the big loan for construction of the refinery granted by this bank,
NF 25 million in guarantees is tied up in Staatsolie. And now, the government
wants to bring back the company into the people's hands. The government
did not want to reveal the amount of Staatsolie's debts, particularly with
the American bank. The President: "We will return to a situation in which
we are in control, and work away the burden." According to Natural Resources
Minister Errol Alibux, the government only wants to serve the interests
of the nation, Staatsolie and its employees. He does not think anybody
can be against that. Therefore, the President says he rejects the rumors
about a possible sale of Staatsolie as untrue and false. Minister Alibux
does not exclude the possibility that those talking about a sale have "another
agenda." "We are dealing in an honest way," he said. The Minister said
that by attracting investors, not only capital, but also the latest technology
is brought in. In that way, it will be possible to increase oil production
considerably, while Staatsolie's activities will be expanded. According
to the Minister, the first investments can be made by July 1. The results
will be noticeable at the end of the year, so Suriname's revenues will
increase as well. At the moment, two potential investors are in Suriname,
and their offers are being studied. The negotiations will be conducted
in the coming days, and Staatsolie's management will also participate in
those. Minister Alibux did not want to reveal which investors want to do
business based on production sharing with Staatsolie. He pointed out that
more parties are interested, and that after a thorough study of the different
proposals and negotiating with the investors, the best deal for Suriname
will be chosen.
(De Ware Tijd, April 2)
OPPOSITION REMAINS WORRIED ABOUT STATE OIL
The announcements of President Jules Wijdenbosch and members of his government
at a press conference held on Wednesday on the policy round State Oil,
did not remove the worry from most of the opposition members. On the contrary,
the confusion these parliamentarians have is so great that they asked the
Head of State questions in a letter yesterday. According to the opposition,
the explanation of the President did not only cause more worry for the
entire opposition in the National Assembly, but also for the community
'and the criticism on the government policy regarding this issue has increased'.
Wijdenbosch also persisted in his refusal to inform or involve parliament
'in the transaction regarding State Oil, while a selected small number
of government institutions and/or persons make decisions on the future
of this state company and about the use of the natural resources'. It is
unacceptable that the government did not take into account the doubts of
the Board of Commissioners, staff members and other personnel of the company.
The obscurity and the alleged 'ignoring 'of the worry of the entire community
by the government, has been reason for these Assembly Members to ask the
President questions. The signers of the letter, all opposition members,
are trying to get openness from the government in the State Oil issue.
with a total of 20 questions
(De Ware Tijd, April 3)
STAFF MEMBERS STAATSOLIE DO NOT
WANT PARTNER FORCED ON THEM
Staff members of Staatsolie will resist when a partner will be forced on
the company under any name. "We deplore the dismissal of the knowledgeable
Board of Commissioners and will not allow the same to happen to the current
management," Staatsolie staff members write in a statement issued yesterday.
The staff says it is relieved that President Jules Wijdenbosch has stated
publicly that there will be no sale of the Tambaredjo fields or Staatsolie
shares. Yet the staff is still concerned, as it is not clear what the government
is planning with the so-called foreign investors for the Tambaredjo fields.
To the President's claims that Staatsolie is no national property because
of debts at the ABN/AMRO Bank, the staff replies that the company is 100%
Surinamese, since all shares are owned by the state. The company has borrowed
foreign currency for its development, just like others, but that does not
curtail the rights of the shareholder. "For example, the shareholder did
not need ABN/AMRO's permission to dismiss the Board of Commissioners,"
the staff members point out to the President. The staff members claim they
support attracting investors for still undeveloped on-shore and off-shore
areas, but this must be done in accordance with the Oil Law. On the basis
of this law, Staatsolie negotiated with investors in the past years. The
staff says negotiations with Shell EP International Ventures BV were started
in February of last year about new off-shore areas in Suriname. The results
of these negotiations were submitted to Natural Resources Minister Errol
Alibux in November last year as a draft Service and Production Sharing
contract. Alibux has nevercommented on this.
(De Ware Tijd, April 4)
HANDS OFF FROM STATE OIL SAYS DIRECTOR
JHARAP
State Oil Director Eddy Jharap is of the opinion that the government should
keep its hands off from the proven reserves of the Tambaredjo field. These
reserves belong to the company only and to nobody else. Jharap denied that
the company has been losing US$ 1 million every month since the opening
of its refinery in October 1997, as Bouterse stated Friday evening during
a meeting of the NDP. Jharap says he is sorry that Bouterse in particular
makes such statements. He does not know how the NDP chairman arrived at
such amounts as State Oil, being still in its starting phase, has not produced
any numbers as yet. No plant makes profit in its initial phase. Jharap
expects that the refinery will have passed this initial phase within five
months. Only then can concretely be stated what will happen. "That is why
it appears from statements by Bouterse that he has wrongly been informed.
I regret his bringing the company in discredit in this way", says Jharap,
who called the accusation 'ordinary mood creation'. Management, staff and
personnel of the company still do not know what is really going to happen
with State Oil. Clarity was not received during the press conference, on
the contrary. "The government is beating around the bush". On no share
holders meeting was the partial sale of the Tambaredjo field or shares
of the company ever discussed. The only thing clear to Jharap is that all
possible investors who orientate at State Oil, say to want to invest in
the company and in the Tambaredjo field. This caused commotion within the
company. Jharap is of the opinion that, for that matter, the government
should state clearly what it wants with the company. The attention should
not be deviated from with so-called losses of the refinery. The Tambaredjo
field has a proven reserve of 160 million barrels. The nett cash value
of this is US$ 360 million at the moment. On the long run, this value will
only increase. The proven reserve is also confirmed by the international
bureau of Netherland and Sewell which is seated in Dallas, USA. This bureau
makes calculations on reserves for several oil companies. Finances are
sought internationally with this data. With the report of Netherland and
Sewell, State Oil has also discussed the financing possibilities with several
banks. Two of them have the company offered loans against attractive conditions
so the increase of production to 20,000 barrels a day can be focused on.
This company can realize this aim within three years on its own. "It really
does not have to be difficult, we have all the know how", says a self-assured
Jharap. The present production is 10,500 barrels a day.
(De Ware Tijd, April 6)
MOTION OF THE NATIONAL PARTY SURINAME
On Friday 3 April 1998, a motion was approved by the structures of the
National Party Suriname (NPS) during a meeting held in the party center
at 77 Wanicastraat. The party chairman R. R. Venetiaan explained about
the developments regarding State Oil, whereby the government announced
its intention to entirely or partially sell and/or place the Tambaredjo
oil field at the disposal of a foreign company. It was considered that
the structures of the NPS are of the opinion that there are no objections
to interesting foreign companies in the exploration and/or exploitation
of possible oil fields in the Republic of Suriname, on-shore on the Tambaredjo
field or in the off-shore areas. It was also considered that it might not
be to the interest of the nation Suriname that the Tambaredjo oil field
entirely or partially is exploited by others than State Oil, since State
Oil has already sufficiently proven to be able to exploit it successfully.
It was decided to invite the main board of the NPS together, with interested
political parties, the business community, the union movement and other
functional groups, to prevent as is obligatory in a democratic constitution,
that the Tambaredjo oil field is entirely or partially sold or handed over
to a foreign company in whatever possible way.
(De Ware Tijd, April 6)
SURINAME TRADE AND INDUSTRY ASSOCIATION
URGES GOVERNMENT TO RECONSIDER VIEWS ON STAATSOLIE
The Trade and Manufacturers' Association Suriname (VSB) is of the opinion
that the specific functions of Staatsolie in the current legislation cannot
and should not be tampered with. The VSB has therefore urged the government
to seriously reconsider its policies and measures concerning Staatsolie
and the exploitation of crude oil reserves. The VSB is of the opinion that,
besides its commercial, advisory, managerial and supervisory function,
Staatsolie's social function as an example cannot be underestimated. The
VSB reminds the government that it had expressed its concern in September
1997 about the signing of a Memorandum of Understanding with the South-Korean
corporation Daewoo for possible participation in Staatsolie. The VSB had
asked the government then to undo the possible damage caused by the Memorandum
of Understanding and to restore Staatsolie's position. The VSB is pleased
with the decision not to work with Daewoo, but at the same time, it concludes
that the government has not abandoned plans to let third parties participate
in the Tambaredjo field developed by Staatsolie itself. The VSB writes
that successive governments, including the current one, have shown much
appreciation for the developments within Staatsolie ever since it was established
18 years ago. These developments are based on pillars such as vision, leadership,
expertise, commitment, confidence and integrity. The VSB thus calls it
'completely incomprehensible' that the government is conducting a policy
without utilizing the company's expertise correctly and sufficiently. The
VSB also thinks that the dismissal of the Board of Commissioners, without
offering any valid arguments why, and without appointing a new one, is
very strange. The VSB's request comes after some social groups and the
opposition parties had protested against the possible sale of parts of
the company and/or the Tambaredjo field.
(De Ware Tijd, April 11)
CLOSER WORKING RELATION STAATSOLIE
AND PETROTRIN
Staatsolie and the national oil company of Trinidad, Petrotrin, will strengthen
the cooperation concerning oil refinery and the sale of oil. This was established
during a visit of a delegation of Petrotrin to Staatsolie. Both companies
have signed a Letter of Understanding. This year Staatsolie will also deliver
50,000- 100,000 barrels a month to Petrotrin for processing in their refinery.
With the daily increase of production at Staatsolie, Petrotrin is willing
to purchase more petroleum. The Trinidadian company is also interested
in participating in the exploration and exploitation activities of Staatsolie
and will do a preliminary study at the invitation of Staatsolie. Pending
the results of this study they will decide, somewhere in the middle of
this year, if they will participate in the activities. There were also
talks with Petrotrin about working together on different levels, e.g. the
development of asphalt of high quality and the accessibility of training
programs of Petrotrin for Staatsolie employees
UNCERTAINTIES AMONG ADEK UNIVERSITY
STUDENTS ABOUT GOVERNMENT INTENTIONS WITH STATE OIL
Questions and remarks by students at the Medical and Technological Faculties
of the University show that there is much uncertainty about the government's
real intentions with State Oil. Jainul Abdul, Permanent Secretary of the
Ministry of Natural Resources, got the most attention from the students
during a discussion yesterday, as he was speaking on behalf of the Minister.
It turns out that the students have doubts about the honorable intentions
of the government with State Oil. The speakers at the discussion were State
Oil staff members who were resuming their usual information meetings. The
staff members provided their usual information about the reasons why they
do not want foreign investments in the Tambaredjo field. The state-owned
company has drafted an investment program that can increase the production
to 20,000 barrels a day within three year. The daily production is currently
10,000 barrels. According to the State Oil staff members, increasing production
faster may only lead to a faster depletion of the reserves, which are currently
estimated at 140 million barrels. Then the investments to increase production
will have been in vain. This fear of the staff members is somewhat allayed
by another staff member. Geologist Soerin Nandelal claims that there is
much more oil - also in the Tambaredjo field. The unexplored areas along
this field also have an enormous potential, and reserves can be proven
with minimal investments (10 drillings). Furthermore, there are good prospects
for big reserves in the area north of the Tambaredjo field till far in
the sea. This technical information strengthens the government's conviction
that there are enormous oil reserves. According to Abdul, one need not
be afraid that increasing production at a fast pace will deplete the reserves
too soon. State Oil had already made clear that it cannot increase production
that fast. In August of last year, the company wrote in a report for Natural
Resources that it could maintain a maximum production of 10,000 barrels
until 2009. When Minister Errol Alibux told State Oil's director that he
felt it should be possible to produce more, the company came up with another
plan. This plan stated that production could be increased to 20,000 barrels
within three years. Abdul claimed that, because of the government's views,
State Oil was suddenly able to produce more oil than it had intended at
first. He concludes that the company had been satisfied with the slow growth
to 10,000 barrels in 10 years. A staff member of State Oil pointed out
that the first plans were drafted three years ago, when not much oil reserves
were proven yet. Abdul pointed out that the enormous growth in proven reserves
of the past three years only prove that things will get better. In the
coming period, Suriname's oil reserves will increase enormously.
(Comment DWT: The government
has still not managed to take away the uncertainties surrounding the State
Oil matter. This was recently proven again at the discussion evening with
University students about this subject. Suriname's future cadre also has
a hard time figuring out the government's real intentions from the information
presented thus far. President Wijdenbosch and Natural Resources Minister
Alibux only made the situation worse and insulted the people's intelligence
by claiming that by signing joint ventures based on profit sharing, State
Oil would revert to the state. The company would now allegedly be in the
hands of the ABN/AMRO Bank in Houston, USA. The government's plans might
be good. These plans must be made public in a clear and honest way. Slogans
such as 'the company is in foreign hands and must be brought back to the
state' have been out of fashion for quite some time now. A clear explanation
of the decision for profit sharing is necessary if, according to its staff,
State Oil can do business alone. The suspicion among the people is very
great. This can only be removed with clear facts. )
(de Ware Tijd April 22)
ERIC TJON KIE SIM NEW CHAIRMAN
STATE OIL BOARD
A new Board of Commissioners was appointed for State Oil yesterday. It
will be headed by Eric Tjon Kie Sim, and also includes Harold Abas and
Dharm Mungra (former members) and Robert Ameerali (chairman of the Chamber
of Commerce and Industry, KKF). It is the intention to appoint three other
members on Monday, after which the new board can get to work. The installation
of the first four members occurred at a special shareholders' meeting called
by State Oil's management as the company's by-laws state that a new board
must be appointed within 30 days after the removal of the old one. According
to a statement released by the President's Cabinet, the new members have
been chosen because of their experience and expertise in production and
business. State Oil director Eddy Jharap hopes that the normalization process
can start as soon as possible after the new board has been installed. KKF
chairman Robert Ameerali sees no problems with his appointment as a board
member as the business community should participate in enterprises to have
an objective view on things.
(De Ware Tijd April 24)
EVEN WITH NEW CEO, STATE OIL MANAGEMENT
DOES NOT DEVIATE FROM EARLIER POINT OF VIEW
The State Oil Management does not deviate from its earlier point of view
to protect the company from being sold to foreign investors, despite OF
its new Board of Commissioners (RvC). Although it was pointed out by the
government that heads may fall in case of any hindrance by management or
staff when executing the government plans, State Oil Director Eddy Jharap
is of the opinion that the workers opinions have not changed and will remain
so in the interest of the company. The union at State Oil and the entire
union movement have stated unanimously that a probable sale of the company
or parts of it would result in national union actions. Jharap in an interview
says that the new RvC still has not said anything about his alleged dismissal,
about which he is hearing rumors. "I hear so many things, but at the shareholders
meeting with the new Council I did not understand that there are plans
for my dismissal". Jharap would also have heard that Minister Errol Alibux
of Natural Resources (NH) will become the manager of the company and that
Advisor of State Desi Bouterse will then become the Minister of NH. Jharap
points out that he has no evidence about this or that there are signs that
such plans are in the making.
(De Ware Tijd April 28)